School Budgets Tighten, Compliance Still Key

Oregon schools are facing budget deficits due to rising costs, declining enrollment, and inadequate state funding. Portland Public Schools, for example, faces a $50 million shortfall for the 2026-27 school year. Salem-Keizer is preparing for $23 million in cuts. To address funding shortfalls, schools are considering various options, including tapping into the state's Education Stability Fund and reforming the "kicker" tax rebate. Some propose decoupling Oregon's tax code from federal policies to prevent federal tax cuts from undermining public education funding. The Oregon Education Association is also advocating to protect schools by stopping tax giveaways to corporations and the wealthy. Despite budget constraints, districts are prioritizing academics and student support services. St. Helens schools, for example, are focusing on programs that directly support student achievement and on-time graduation. They also aim to protect student-facing positions and sustain special education and equity-based supports. Oregon schools must also comply with new mandates, such as Senate Bill 1572, which addresses student discipline, high school diplomas, and third-grade reading proficiency. The bill requires schools to convene placement review committees when a student is removed from the classroom. It also mandates that students demonstrate proficiency in essential learning skills before receiving a high school diploma and prohibits advancing students who cannot demonstrate third-grade reading proficiency. Districts report annually on compliance with Division 22 standards, which include requirements related to high-quality learning experiences and aligned educational systems. These standards ensure that schools meet the requirements set by the Oregon Legislature and the State Board of Education.